Is it possible to recognize a minimum tax in expenses under the simplified tax system?

There is a high probability that some fairly serious problems will arise with the tax office.

Dear readers! The article talks about typical ways to resolve legal issues, but each case is individual. If you want to find out how to solve your particular problem , contact a consultant:

8 (800) 700 95 53

APPLICATIONS AND CALLS ARE ACCEPTED 24/7 and 7 days a week.

It's fast and FREE !

It is especially important to understand what is included in material costs and all aspects of this definition. This will make it possible to avoid fines and sanctions from the Federal Tax Service.

The principle of “income minus expenses”

Individual entrepreneur organizations that in 2021 apply the “simplified tax system” (STS) and pay a single tax on the difference between income and expenses have the right to reduce the tax base by the amount of expenses incurred (clause 2 of Article 346.18 of the Tax Code of the Russian Federation).

Having chosen the object of taxation “income reduced by the amount of expenses”, the payer of the simplified tax system in 2021 must keep records of income received and expenses incurred in the book of income and expenses. And based on this book, determine the final amount of tax to be paid.

What “gets” into income

As part of the “simplified” income, it is necessary to take into account income from sales and non-operating income (Article 346.15 of the Tax Code of the Russian Federation). In this case, income under the simplified tax system is recognized using the “cash” method. That is, the date of receipt of income is the day of receipt of funds, receipt of other property or repayment of debt by other means (clause 1 of Article 346.17 of the Tax Code of the Russian Federation).

What is included in expenses

The list of expenses that can be taken into account on a simplified basis is given in Article 346.16 of the Tax Code of the Russian Federation and is closed. This means that not any costs can be taken into account, but only justified and documented costs listed in the specified list. This list includes, but is not limited to:

• expenses for the acquisition (construction, production), as well as completion (retrofitting, reconstruction, modernization and technical re-equipment) of fixed assets;
• costs of acquiring or independently creating intangible assets;
• material costs, including costs for the purchase of raw materials and materials;
• labor costs;
• the cost of purchased goods purchased for resale;
• amounts of input VAT paid to suppliers;
• other taxes, fees and insurance premiums paid in accordance with the law. An exception is the single tax, as well as VAT allocated in invoices and paid to the budget in accordance with paragraph 5 of Article 173 of the Tax Code of the Russian Federation. These taxes cannot be included in expenses (subclause 22, clause 1, article 346.16 of the Tax Code of the Russian Federation).
• costs for maintenance of CCP and removal of solid waste;
• expenses for compulsory insurance of employees, property and liability, etc.

What applies to material costs under the simplified tax system (list) ↑

Material expenses under the simplified tax system are various types of expenses of a certain nature. These include spending on a variety of needs.

Moreover, material costs include different things, depending on the chosen object of taxation.

The basis for recognizing expenses as material is the list given in Article No. 254 of the Tax Code of the Russian Federation:

• purchase of raw materials, as well as all kinds of materials for production;
• materials used for product packaging;
• expenses for economic and production needs;
• acquisition of equipment, instruments, as well as all kinds of other tools for conducting commercial activities (including clothing, spare parts);
• purchase of components, parts for spare parts and mechanisms of equipment, vehicles;
• acquisition of all kinds of services of a production nature;
• expenses for the operation of the taxpayer's fixed assets.

Expenses for materials under the simplified tax system must be confirmed by payment orders, as well as other documents.

Income

If “income” is used as the object of taxation, then material expenses are in no way taken into account when using the simplified taxation system.

This is a very important feature of the tax regime under consideration, which must be taken into account without fail.

However, an individual entrepreneur or an organization has the right to reflect them in accounting accordingly.

Income minus expenses

If “income minus expenses” was chosen as the taxable object, accounting for material expenses is strictly required.

Since they are used in the formation of the amount from which the amount of tax obligatory for payment to the state budget is calculated.

It should be remembered that the procedure for recognizing material expenses is reflected in the current legislation.

Breakdown of expenses: table

Some novice accountants are surprised: “How can one accurately understand from Article 346.16 of the Tax Code of the Russian Federation whether it is possible to reduce the simplified tax system for a particular expense or not?” Yes, indeed, some of the expenses described in this article raise questions. What exactly, for example, is included in labor costs? Or what costs should be attributed to solid waste removal in 2021? As a rule, the Ministry of Finance or the Federal Tax Service comes to the rescue on such issues and gives their explanations. Based on the Tax Code of the Russian Federation and official explanations, we have prepared a breakdown of expenses that in 2021 can be attributed to expenses under the simplified tax system with the object of taxation “income minus expenses.” Here is a table with expenses, which are expenses that are not directly named in article 346.16, but which can be taken into account in expenses:

What labor costs cannot be taken into account in full?

Some expenses related to labor costs cannot be taken into account in full. In particular, these include:

• costs under contracts for voluntary insurance of employees, non-state pension provision;
• costs of additional contributions to the funded part of the pension;
• expenses for reimbursement of interest paid by employees on loans for the purchase or construction of housing (clause 16, clause 24.1 of Article 255 of the Tax Code of the Russian Federation).

For example, the total amount of contributions under long-term life insurance contracts for employees, voluntary pension insurance and (or) non-state pension provision for employees is taken into account for taxation in the amount of no more than 12% of the amount of the organization’s expenses for labor compensation (paragraph 7, paragraph 16, article 255 of the Tax Code RF).

Expenses for reimbursing employees' expenses for paying loans for the purchase or construction of housing can be included in the calculation of the tax base if they do not exceed 3% of the amount of labor costs (clause 24.1 of Article 255 of the Tax Code of the Russian Federation).

What expenses cannot be taken into account?

It may also be useful for an accountant to become familiar with the breakdown of expenses that cannot be taken into account when calculating the simplified tax system “income minus expenses.” Let us summarize in the table the list of expenses that, as of 2021, are of a controversial nature. Or if the position of the Russian Ministry of Finance, the Federal Tax Service was expressed on this issue, or a court decision was made.

Read also

30.09.2016

Features of accounting for material costs

According to the rules, the moment of recognition of material expenses by the simplified tax system is after the actual payment has been made to suppliers and other counterparties (clauses 1 and 2 of Article 346.17 of the Tax Code of the Russian Federation). Bills can be paid either through a cash register or from a bank account.

To reduce the tax base, the cost of purchased assets must be taken into account, and the debt for the supplied products (if any) must be repaid in a timely manner.

The date of payment is the days of actual withdrawal of funds from the current account or registration of cash settlements by the cashier.

Also see “Changes to the simplified tax system in 2021”.

Read also

14.03.2018

Costs of household supplies for the office

Household goods are not directly included in the list of expenses under the simplified system. However, “simplifiers”, like any other organization, cannot do without such costs. How to take into account the costs of detergents and napkins?

In accordance with Art. 163 of the Labor Code of the Russian Federation, the employer is obliged to provide normal conditions for employees to fulfill production standards. Such conditions include, in particular:

• good condition of premises, structures, machines, technological equipment and equipment;
• timely provision of technical and other documentation necessary for work;
• proper quality of materials, tools, other means and items necessary to perform the work, their timely provision to the employee;
• working conditions that meet labor protection and production safety requirements.

According to paragraphs. 1, 2 tbsp. 25 of the Federal Law of March 30, 1999 No. 52-FZ “On the sanitary and epidemiological welfare of the population”, working conditions, the workplace and the labor process should not have a harmful effect on humans. Requirements for ensuring safe working conditions for humans are established by sanitary rules and other regulatory legal acts of the Russian Federation.

POSITION OF THE MINISTRY OF FINANCE

The consumption of material supplies, which include toilet paper, soap, cleaning products, napkins, etc., is determined by the needs of the company. Therefore, you can buy and spend exactly as much as you need, accepting the spent amounts as expenses under the simplified tax system.

— Letter dated September 1, 2006 No. 03-11-04/2/182.

Individual entrepreneurs and legal entities are obliged to carry out sanitary and anti-epidemic (preventive) measures to ensure safe working conditions for humans and to comply with the requirements of sanitary rules and other regulatory legal acts of the Russian Federation for production processes and technological equipment, organization of workplaces, collective and individual protective equipment for workers , work, rest and consumer services for workers in order to prevent injuries, occupational diseases, infectious diseases and diseases (poisoning) associated with working conditions.

Compliance with these requirements is achieved by maintaining clean and tidy premises, workplaces and providing workers with cleaning, washing and other means. In practice, many people combine all such costs into one category “household goods”.

As we said, household goods are not included in the closed list of expenses under the simplified tax system. However, “simplified” have the right to take into account material costs, the composition of which is determined in accordance with Art. 254 of the Tax Code of the Russian Federation, and in paragraphs. Paragraph 2, paragraph 1 of this article refers to materials used for household needs. These are the same household goods.

GOOD TO KNOW

In both tax and accounting, inventories are taken into account at actual cost, the procedure for determining which depends on the method of receipt of the asset by the organization (purchase for a fee, free of charge, as a contribution to the authorized capital, etc.).

Accounting

In accordance with clause 2 of PBU 5/01, the following assets are accepted as inventories:

• used as raw materials, materials, etc. in the production of products intended for sale (performance of work, provision of services);
• intended for sale;
• used for the management and economic needs of the organization.

Also, in accordance with clause 42 of the Guidelines for accounting of inventories (approved by order of the Ministry of Finance of the Russian Federation dated December 28, 2001 No. 119n, hereinafter referred to as the Guidelines), materials are a type of inventory. Materials include raw materials, basic and auxiliary materials, purchased semi-finished products and components, fuel, containers, spare parts, construction and other materials used in the production of products (performance of work, provision of services).

Since household goods are purchased to ensure normal working conditions during the production of products (performance of work, provision of services), they can be classified as industrial goods. Consequently, they must be capitalized at the actual cost, equal to the amount of the enterprise’s actual costs for their acquisition, excluding VAT (clauses 5, 6 of PBU 5/01). However, since organizations using the simplified tax system are not VAT payers, the amount of VAT presented by the supplier will be taken into account in their actual cost.

POSITION OF THE MINISTRY OF FINANCE

VAT on purchased materials is subject to inclusion in expenses precisely on the basis of paragraphs. 8 clause 1 art. 346.16 Tax Code of the Russian Federation.

— Letter dated September 28, 2007 No. 03-11-04/2/239.

The receipt of household goods is reflected in accounting under account 10 “Inventories”, subaccount 10-9 “Inventory and household supplies”.

In accordance with paragraphs. 5, 7, 17, 18 PBU 10/99, the use of household goods is reflected as part of expenses for ordinary activities and is recognized as expenses in the reporting period in which they were incurred. The transfer of household goods is reflected in accounting from the credit of account 10 to the debit of account 25 “General production expenses” or account 26 “General expenses”, etc.

Example.

An organization using the simplified tax system purchased household goods worth 100,000 rubles. Half of the purchased batch of household goods was transferred to production.

GOOD TO KNOW

As of January 1, 2015, the LIFO method is not used for tax purposes.

simplified tax system

Taxpayer expenses for the purchase of household goods and household chemicals (toilet paper, disposable paper towels, napkins, toilet soap, dish sponges, napkins, cleaning products, etc.) are classified as household expenses. In this regard, these justified and documented expenses reduce the tax base when applying the simplified taxation system.

As for the norms for writing off the above-mentioned costs as expenses, the cost of inventories included in material expenses is determined based on their acquisition prices (excluding value added tax and excise taxes, except for cases provided for by the Tax Code of the Russian Federation), including commissions, paid to intermediary organizations, import customs duties and fees, transportation costs and other costs associated with the acquisition of inventories. Amounts of input VAT paid when purchasing household goods are not included in their cost, but are taken into account as a separate type of expense.

According to paragraphs. 1 item 2 art. 346.17 of the Tax Code of the Russian Federation, material expenses (including expenses for the purchase of household goods) are taken into account at the time of repayment of the debt to their supplier by writing off money from the current account, paying from the cash register or in another way (cash method). Thus, expenses for the acquisition of materials are recognized after they have been paid for and entered into the warehouse, regardless of the date of their write-off for production (letters of the Ministry of Finance of Russia dated July 31, 2013 No. 03-11-11/30607, dated December 7, 2012 No. 03-11-11/ 366).

IMPORTANT IN WORK

Chapter 26.2 of the Tax Code of the Russian Federation does not provide for adjustments to the value of inventory balances transferred to production, but not used in production at the end of the month.